Question: which one is correct? Projects with normal cash flows must have two changes in the sign of the cash flows, e.g., from negative to positive

which one is correct?

Projects with "normal" cash flows must have two changes in the sign of the cash flows, e.g., from negative to positive to negative. If there are more than two sign changes, then the cash flow stream is "nonnormal."

Projects with "normal" cash flows can have only one real IRR.

Projects with "nonnormal" cash flows are almost never encountered in the real world.

The "multiple IRR problem" can arise if a project's cash flows are "normal."

Projects with "normal" cash flows can have two or more real IRRs.

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